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City passes 2014 Budget

January 6, 2014

The City
of Penticton has adopted its 2014 financial plan including a 2% tax increase –
the first budget increase in four years and the lowest tax rate change in
almost 10 years.

“The
City of Penticton did not raise taxes for three years, cutting spending even
when faced with significant cost pressures from contracts and inflation. This
is a testament to the hard work of Council and staff,” said Mayor Garry Litke.
“Our residents have said strongly they want to see continued investment into
their roads and community. This budget balances the need for sound
infrastructure and prudent financial management.”

This is
the first budget increase proposed by the City of Penticton in four years, as budgets
for the 2013 and 2012 years all passed with 0% increases. In 2011, the City of
Penticton actually reduced taxes by 0.5%. This tax rate increase remains below
the 25-year average of 2.15%, and is less than half the 10-year high of 5% in
2007.

The
change in 2014 means a $26.98 increase in annual taxes for the average assessed
home of $350,000, or $2.25 per month.

Annual
budget deliberations for the municipality take multiple days to go through, and
cover a wide array of spending decisions in both operating and capital budgets.
Highlights from the 2014 Budget include:

Recreation Penticton was $150,000 under budget in 2014,
and has managed to reduce its subsidy by more than $750,000 since 2009.

The South Okanagan Events Centre and Penticton Trade and
Convention Centre had a banner year in 2013, and despite the cyclical nature of
the industry, are forecasting a further $116,263 reduction in city subsidy.
This amount is significant, as the SOEC complex has reduced its subsidy by $918,000
– almost $1 million from 2009 levels – while generating tax revenue for the
City and $33.9 million in economic activity for the local economy.

Investments of $405,400 for sidewalk improvements in
several parts of the community were approved.

Downtown revitalization moves ahead with construction
anticipated on Westminster Avenue and Martin Street, as well as consultation
and design of Main Street.

A $6 million investment into 12KV transformer upgrades at
the Westminster Substation to enhance capacity in the Electric Utility system
was approved, to provide more robust system flexibility in the event backup
measures are required.

Continuation of phased roof repair at Memorial Arena, to
ensure the historic sheet of ice is preserved for community use.

Investment of $250,000 in animal control facilities was
approved.

Investment of $120,000 in traffic signal improvements in
school zones to improve the safety of children walking to school was approved.

Upgrades to the Advanced Waste Water Treatment Plant to
construct a new fermenter, worth $2.12 million, were approved.

All
budget presentations are available on the City website, and budget sessions were
streamed live on the site as they happened. City staff also monitored Twitter
on the @cityofpenticton account using hashtag #penbudget14 for feedback. During
the sessions, the City of Penticton received recognition from the Canadian
Federation of Independent Business on social media for the City's transparent budgeting
process.

Three readings of the
budget bylaw were passed at a special Council meeting on Thursday, Jan. 2, and
final adoption passed during a special meeting Friday, Jan. 3.
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